Strategic Analysis of the Pharma Market, Future …

1 Emerging Business Models in the Pharmaceutical Industries Strategic Analysis of the Pharma market , Future Revenue Models and Key Players JSB Intelligence Kildare House, 102-104 Sheen Road Richmond, TW9 1UF, UK. Tel. +44 (0) 870 7653 632. Fax. +44 (0) 870 7653 722. Email: Strategic Analysis of the Pharma market , Future Revenue Models and Key Players 1. Personalised medicine is a laudable aim, but we are not anywhere near there yet . I think biotech has investigated some niche disease areas with targeted approaches. But it is in the early days.. - Dr. Declan P. Doogan, head of medical and development science, Pfizer Inc. Strategic Analysis of the Pharma market , Future Revenue Models and Key Players 2. Table of Contents Introduction.

2 6. market Structure and Overview . 9. Factors Increasing market Size 11. market Restraints . 12. Dynamic Shifts in Pharma market .. 13. Geographic Overview & Landscaping 15. Trends .. 17. Long Term Strategies Long Term Strategies - Forward Integration Model 19. Long Term Strategies - Targeted Treatment Solutions . 21. Long Term Strategies - Biotech and Genomics 23. Network Model Network Model - Outsourcing 27. Network Model - In-licensing vs. Out-licensing 30. Network Model - Product Life Cycle Management 31. Short Term Strategies Short Term Strategies - Semi Block Buster Model . 32. Short Term Strategies - Pre- and Post-patent Based . 34. Short Term Strategies Against Parallel Trade 37. Mergers & Acquisitions.

3 39. market Forecasting & New Revenue Models . 41. The Winning Proposition 44. Strategic Analysis of the Pharma market , Future Revenue Models and Key Players 3. Table of Contents Benchmarking of the Main Players By Revenues . 46. By Employees .. 47. Top 20 Drugs by Sales 48. Top 20 Drugs by Percentage Increase in Sales . 49. By Percentage Growth in Operating Margins . 50. By Percentage Growth in Revenues . 51. By Geographic wise Revenue Growth . 52. By DTC Spending . 53. Key SWOT Analysis of Top 10 Companies 54. Patents Expiring 56. Company Profiles Pfizer Inc .. 58. GlaxoSmithKline plc 60. Merck & Co 62. Aventis 64. Bristol Myers Squibb .. 66. Johnson n Johnson . 69. AstraZeneca . 71. Wyeth 73. Novartis 75.

4 Eli Lily . 77. Conclusions .. 79. Strategic Analysis of the Pharma market , Future Revenue Models and Key Players 4. Acronyms Big Pharmas The top global 50 Pharma companies based on their revenues NCE Number of Chemical Entity NME Number of Molecular Entity Traditionally drugs were chemical-based; the new genomic drugs are molecular-based DTC/OTC Direct To Counter/Over the Counter This involves selling drugs in retail stores without prescriptions, by creating brand awareness among consumers. ROI Return on Investments Integrators Pharma companies working on the network model with outsourcing /Licensing majority of the Pharma 's internal and external process API Active Pharmaceutical Ingredients Strategic Analysis of the Pharma market , Future Revenue Models and Key Players 5.

5 Report Structure and Methodology Introduction to the Report Focus The report provides an overview and Analysis of the The key focus of the report is the market itself and minimum latest trends and strategies adopted by the main attention has been paid to new drug inventions and disease players. management. Methodology Structure of the Report The report provides an Analysis of short and long term The report primarily explores short and long term strategies of strategies of big Pharma and biotech companies. It is Pharma and biotech companies. Key market developments in the built on primary and secondary information about the Pharma industry have been classified into boosters and key market developments of the top 50 Pharma and suppressants.

6 The Company Profile section highlights portfolios biotech companies based on revenues. of big Pharma companies in terms of revenues and strategies. Reference to a large number of reports about the The companies have been benchmarked against their Pharma industry revealed that none of them covered all operational and business facts and figures. the market developments and their direct and indirect impact on the new revenue models of the Pharma industry. Revenue Model The total net impact on revenues of the market dynamics and Introduction to The Pharma Monitor strategies adopted by the companies has been defined in the This report also introduces the topics of The Monthly Revenue Model section. Pharma Monitor we intend to launch in February '05.

7 The Pharma Monitor will offer a month-by-month A hypothetical revenue model has been used to provide a Strategic Analysis of all key competitive developments in comprehensive evaluation of the net total effect on revenues of The Pharma Industry in a short and easy to ready view, suppressants and boosters in the Pharma market . but top Pharma analysts and experts. The Analysis will be in line with issues discussed in this report. Strategic Analysis of the Pharma market , Future Revenue Models and Key Players 6. Introduction Pharma Industry Overview The Pharma industry is affected by the dynamic shifts in the market . New revenue models are resulting from activities such as parallel trade, the generic vs. patent fight, mergers and acquisitions (M&A), in-licensing and out-licensing, and the choice between semi block buster and block buster.

8 The shift from chemical-based small molecules to biology-based large molecules like antibodies and protein has also created new opportunities in the industry. Distinct Positioning for Pharma Companies Pharma companies are distinctly positioning themselves on the basis of their capabilities, banking on their R&D strength, marketing network, and capitalisation to decide their portfolio. Smaller Pharma companies are Consolidating forming a Supernet of Pharma companies complementing their capabilities to each other. The Big Pharma companies are consolidating to lead the league as Super Pharmas . Companies have to choose between Pharma , biotech and their respective generic models. Niche players are tending towards M&A to safeguard their focus, and achieve business goals.

9 Pharma companies are positioning themselves as biotech or Pharma on the stock market . Incorrect positioning of these companies can impact their capitalisation, which remains the key to growth. Strategic Analysis of the Pharma market , Future Revenue Models and Key Players 7. Pharma Industry- Key Playing Fields market Share Drivers The short and long term strategies of market Share Drivers Pharma companies play a crucial role in market Share Drivers -Integrated Model -Integrated Model deciding their market share. Short term -Pre and Post Patent Strategies strategies aim at fighting patenting issues -Pre and Post Patent Strategies -Semi Blockbusters and will have an immediate impact on -Semi Blockbusters -Targeted Treatment Solutions their market share in the coming years.

10 -Targeted Treatment Solutions -Marketing Network Long term strategies focus on -Marketing Network -New Revenue model -New Revenue model improvement in R&D, targeted treatment -R&D. -R&D solutions, biotech, and integrated network models. Pharma companies are working hard on long term issues even while striving for larger market shares. Growth Factors Restraining Factors Growth Factors Restraining Factors -Effectiveness in Drugs -Limited Purchasing Capacity -Effectiveness in Drugs Key Playing -Limited Purchasing Capacity market Growth Factors -Growth in Technologies -Reduced Productivity in R&D. -Growth in Technologies Field -Reduced Productivity in R&D The Pharma market is being adversely -Outsourced Model -Reducing Net Selling Prices -Outsourced Model -Reducing Net Selling Prices affected by declining R&D productivity, -Biotech -Reduced Consumption -Biotech -Reduced Consumption high cost of commercialisation, reducing selling rates, and lower consumption.